Home buying should increase in 2025
Will 2025 be a big year for home buying? If mortgage rates gradually decrease as anticipated, the housing market should really start to simmer.
But some places will heat up more than others. A report from Zillow forecasts which cities will see the most growth among the 50 largest U.S. metro areas.
If you’re looking to buy (or sell) a property in 2025, see what kind of market you can expect around your city.
Check your home buying options. Start hereHigh growth housing markets for 2025
For home buyers and sellers alike, having a general feel for your local real estate can help you know what to expect in terms of pricing, competition and timing.
The hottest housing markets of 2025 offer relative affordability, setting them up for high competition among borrowers.
Zillow analyzed the country’s 50 largest metro areas and predicted which will see the most action over the course of this year. The rankings account for annualized home value gains, days on market, and job growth in relation to new construction permits.
“Construction that keeps pace with an area’s growth remains a crucial piece of keeping homes available and accessible,” said Skylar Olsen, Zillow chief economist. “Shoppers nationwide should see more options for sale than in recent years, along with slow and steady price growth. That’s the good news. But both buyers and sellers should expect unpredictable mortgage rates.”
Below are the top 12 housing markets for 2025, according to Zillow:
12. Columbus, Ohio
2025 Home Value Growth Forecast: 3.1%
Jobs per New Home Permitted: -0.8
Zillow Home Value Index 2024: $310,746
ZHVI Year-over-Year Growth 2024: 3.8%
11. Cincinnati, Ohio
2025 Home Value Growth Forecast: 2.9%
Jobs per New Home Permitted: -0.2
Zillow Home Value Index 2024: $281,887
ZHVI Year-over-Year Growth 2024: 4.6%
10. Salt Lake City, Utah
2025 Home Value Growth Forecast: 2.3%
Jobs per New Home Permitted: 0.5
Zillow Home Value Index 2024: $543,324
ZHVI Year-over-Year Growth 2024: 2.8%
9. Richmond, Virginia
2025 Home Value Growth Forecast: 2.9%
Jobs per New Home Permitted: -0.1
Zillow Home Value Index 2024: $368,957
ZHVI Year-over-Year Growth 2024: 4.1%
8. Kansas City, Missouri
2025 Home Value Growth Forecast: 2.7%
Jobs per New Home Permitted: 0.2
Zillow Home Value Index 2024: $299,118
ZHVI Year-over-Year Growth 2024: 3.8%
7. Charlotte, North Carolina
2025 Home Value Growth Forecast: 3.2%
Jobs per New Home Permitted: -0.5
Zillow Home Value Index 2024: $377,450
ZHVI Year-over-Year Growth 2024: 1.6%
6. St. Louis, Missouri
2025 Home Value Growth Forecast: 1.9%
Jobs per New Home Permitted: 1.3
Zillow Home Value Index 2024: $250,141
ZHVI Year-over-Year Growth 2024: 4.2%
5. Philadelphia, Pennsylvania
2025 Home Value Growth Forecast: 2.6%
Jobs per New Home Permitted: 1.5
Zillow Home Value Index 2024: $362,744
ZHVI Year-over-Year Growth 2024: 4.6%
4. Hartford, Connecticut
2025 Home Value Growth Forecast: 4.2%
Jobs per New Home Permitted: 1.1
Zillow Home Value Index 2024: $363,298
ZHVI Year-over-Year Growth 2024: 6.5%
3. Providence, Rhode Island
2025 Home Value Growth Forecast: 3.7%
Jobs per New Home Permitted: 1.3
Zillow Home Value Index 2024: $484,019
ZHVI Year-over-Year Growth 2024: 6.7%
2. Indianapolis, Indiana
2025 Home Value Growth Forecast: 3.4%
Jobs per New Home Permitted: 0.5
Zillow Home Value Index 2024: $275,639
ZHVI Year-over-Year Growth 2024: 3.6%
1. Buffalo, New York
2025 Home Value Growth Forecast: 2.8%
Jobs per New Home Permitted: 2
Zillow Home Value Index 2024: $260,537
ZHVI Year-over-Year Growth 2024: 5.7%
“In chilly Buffalo, competition among buyers will remain hot, with employment growing far faster than builders are adding homes,” Olsen added.
Notably, Zillow forecast property values to increase 1.7% annually for the 50 largest markets and 2.4% overall in 2025. Virginia Beach, Va. (+23 spots), Birmingham, Ala. (21), Oklahoma City (21), Salt Lake City (18), and Hartford (15) rose the most in the hottest market rankings from the previous year. Meanwhile, Memphis, Tenn. (-30 spots), Las Vegas (-23), Tampa, Fla. (-19), San Francisco (-19), and Atlanta (-18) fell furthest down the list.
Check your home buying eligibility hereColder housing markets for 2025
Conversely, not every market currently contains the underlying attributes for booming home sales in 2025.
However, while price growth could stagnate and even regress in some places, they could present potential home buyers with less competition and opportunities for comparative leverage.
Among the 50 largest metro areas, the table below shows the 12 coldest housing markets Zillow forecasted for 2025:
| Rank | Metro Area | 2025 Home Value Growth Forecast | Jobs per New Home Permitted | Zillow Home Value Index (ZHVI) 2024 | ZHVI Year-over-Year Growth, 2024 | Change in Inventory Versus 2018–2019 Averages | Change in Rank from 2024 |
| 50 | New Orleans, LA | -3.8% | -0.9 | $235,657 | -1.4% | 61.1% | 0 |
| 49 | San Francisco, CA | -1.7% | -1.1 | $1,140,718 | 2.7% | -3.5% | -19 |
| 48 | San Jose, CA | -0.2% | -1.3 | $1,588,186 | 7.9% | -34.8% | -6 |
| 47 | Portland, OR | 0.3% | -1.3 | $543,814 | 1.8% | -19.3% | -10 |
| 46 | Austin, TX | -0.4% | -0.6 | $444,248 | -3.2% | 33.7% | -6 |
| 45 | Minneapolis, MN | 0.2% | -0.8 | $368,562 | 2.5% | -26.7% | 1 |
| 44 | Denver, CO | 0.1% | -0.6 | $579,604 | 0.8% | 4.3% | 4 |
| 43 | Memphis, TN | 2.3% | -1.7 | $233,885 | 1.1% | -1.2% | -30 |
| 42 | Milwaukee, WI | 2.4% | -1.6 | $343,920 | 5.3% | -27.1% | 2 |
| 41 | New York, NY | 1.3% | 0.3 | $677,368 | 6.4% | -55.9% | 4 |
| 40 | Jacksonville, FL | 1.9% | -0.8 | $353,501 | -0.9% | 14.1% | -9 |
| 39 | Chicago, IL | 1.2% | -0.5 | $321,484 | 5.4% | -48.6% | -17 |
The bottom line
With droves of house hunters still searching and more expected to come off the sidelines in 2025, the home buying market is anticipated to heat up.
While this may stoke competition in your metro area, you can (and should) learn how to both negotiate your interest rate and with the home seller. Plus, you can help yourself by being prepared and seeing what financial aid you may qualify for.
If you’re ready to start your journey to homeownership, talk to a local lender today.
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